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Jeff invested $3000 in an account that earns 6.5% interest, compounded annually. The formula for compound interest is A(t) = P(1 + i) t. How much did Jeff have in the account after 3 years?

1 Answer

3 votes

Answer:

$3623.85

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

  1. Brackets
  2. Parenthesis
  3. Exponents
  4. Multiplication
  5. Division
  6. Addition
  7. Subtraction
  • Left to Right

Equality Properties

Algebra I

Compounded Interest Formula:
A=P(1 + (r)/(n) )^(nt)

  • A is final amount
  • P is principle amount
  • r is rate
  • n is compounded rate
  • t is time in years

Explanation:

Step 1: Identify Variables

P = 3000

r = 0.065

n = 1

t = 3

Step 2: Find Final Amount A

  1. Substitute [CIF]:
    A=3000(1 + (0.065)/(1) )^(1(3))
  2. Multiply:
    A=3000(1 + (0.065)/(1) )^(3)
  3. Divide:
    A=3000(1 +0.065 )^(3)
  4. Add:
    A=3000(1.065 )^(3)
  5. Exponents:
    A=3000(1.20795)
  6. Multiply:
    A=3623.85
User BOBIN JOSEPH
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